Nigerian-based insurtech startup ETAP has raised $1.5 million in pre-seed investment led by Mobility 54, the venture capital arm of Toyota Tsusho and CFAO Group, with participation from other firms like Tangerine Insurance, Graph Ventures, Newmont as well as other angel investors.

ETAP makes it easier to purchase car insurance and make claims for its customers. The funding will be used to grow the startup's team and drive the adoption of car insurance across Africa. 

With a number of daily, weekly and monthly plans to choose from, the startup has made the process of buying and claiming car insurance easy. ETAP leverages machine learning to establish intelligent risk profiles which go on to determine the appropriate premiums for individual drivers.

Following its beta launch in November 2021, the startup claims to have insured more than 130,000 individual trips and over 500,000 kilometres in car journeys, and it has now secured US$1.5 million in pre-seed funding for further growth.

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According to the startup, the funding will be used to support the rolling out of ETAP’s app where drivers can buy insurance in 90 seconds, complete claims in three minutes or less, and get rewarded for good driving and avoiding accidents. The funding will also provide opportunities to explore other insurance services for car owners in other countries across Africa.

“Just like any other digital service, we believe Nigerians should be able to buy and claim car insurance without having to “call a guy”. We also believe that rewarding good drivers can be a catalyst for better driving and making our roads safer,” said Ibraheem Babalola, CEO and founder of ETAP. 

“This is why we have created Africa’s most powerful car insurance app and we are excited to have raised these funds to bring more users on board. Too often, the process of buying and claiming insurance in Africa is so out of touch with the everyday reality of most people but we are changing the game and making the process just as enjoyable as any other experience that consumers access on the mobile phone.”

Speaking about the investment in ETAP, Yumi Takagi, project manager at Mobility 54, said ETAP was addressing many challenges that impact the automotive experience in Africa.

“We are excited to support and work with them to bring their innovation to more drivers across the continent. We believe that ETAP will engage with this important role and revolutionise the automotive insurance industry with their powerful technology,” he said.